Retail trade in the United States
For the US subsidiaries, 1989 was a good year. Total US sales rose from $3,514 mil
lion to $4,057 million, a 15.5% increase. Operating results also showed a major
improvement. The total number of stores operated by our three US chains rose
from 329 to 342 and the total sales area increased from 6,807,500 square feet to 7,615,617
square feet.
Early in 1989 Ahold USA, the holding company of Ahold's US subsidiaries, opened its
own office with a small staff in Parsippany (N J.). This office is responsible for organizing
and supervising cooperation among the three chains. Accordingly, its activities include
monitoring the formulas and results, providing market research and coordinating
purchasing.
BI-LO increased its sales by 12.6% to $1,430 million. This rise was caused mainly by the
acquisition of 21 supermarkets. Operating results increased, benefiting from the capital
investments of the past few years: with bigger stores BI-LO has been able to broaden its
assortment and add service departments, which has resulted in improved margins.
In 1989 BI-LO opened two new stores, expanded another two, remodeled one, and
converted the 21 newly acquired supermarkets. Ten unprofitable stores were closed. By
1989 year end the company had 178 stores, three quarters of them fully modernized. The
majority of the remaining stores will be updated in the coming years. The sales area was
enlarged by 18.2% to 3,712,061 square feet.
In September over 60 BI-LO supermarkets were hit by Hurricane Hugo. Careful
planning and extraordinary commitment by the employees in the wake of the storm
enabled BI-LO to reopen its stores ahead of its competition. Consequently, the
hurricane had no negative effects on sales and operating results.
BI-LO expects sales and operating results to improve again in 1990. There are plans
to open several new stores and to expand or remodel a number of existing super
markets.
In 1989, First National Supermarkets (LNS) - the majority participation acquired early in
1988, with stores in the states of Ohio, New Hampshire, Massachusetts, Connecticut and
New York - reaped the first fruits of the sizable capital investment program started
immediately after the acquisition. Sales increased by 18.7% to $1,837 million, reflecting
an increased sales area, the success of the Linast Superstore formula in Ohio and the
introduction of a new store formula in the Edwards stores, combined with a further
expansion of the Finast supermarkets in Connecticut. Operating results showed consid
erable improvement as well. In addition to reflecting sales growth, this was also attribut
able to cost control, margin improvement and an upgrading of the product assortment.
Key figures Retail Trade United States
1989 (1988)
BI-LO
FNS (as of01-29-1988)
GFS
Total
(x 1 million)
1,430 1,270)
1,837 1,547)
790 697)
4,057(3,514)
Sales Sales growth
in °/o
12.6
18.7
13.4
15.5
Locations
178 165)
112 115)
52 49)
342(329)
Sales area
x 1,000 sq.ft.
3,712(3,140)
2,708 2,607)
1,196 1,061)
7,616(6,808)
Sales/
average sq.ft.
$390(410)
690 650)
700 670)
Full-time
equivalents,
average
10,425 10,380)
11,682 10,956)
4,913 4,291)
27,020 (25,627)
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